GBP/USD Price Forecast: Recovers, aiming for 1.3400 on upbeat sentiment
- GBP/USD gains 0.59%, trading at 1.3394 after rebounding from a daily low of 1.3312.
- Break above 1.3400 could push the pair towards the YTD high of 1.3437 and further resistance at 1.3500.
- Failure to reclaim 1.3400 may lead to testing the September 25 low of 1.3312.
The Pound Sterling climbs over 0.59% against the Greenback, boosted by an improvement in risk appetite, sponsored by China’s stimulus to its economy and increasing odds for a ‘soft landing’ in the US after revealing robust economic data. The GBP/USD trades at 1.3394 after bouncing off daily lows of 1.3312.
GBP/USD Price Forecast: Technical outlook
The GBP/USD resumed its uptrend after diving below the top trendline of an ascending channel, which, in the short term, was a sign of sellers’ strength. However, bulls emerged around the week's lows and lifted the exchange rate. Still, it remains shy of the crucial 1.3400 figure, today’s high.
If GBP/USD reclaims 1.3400, the next resistance will be the 1.3429-1.3437 area, the confluence of the current year-to-date (YTD) high and March 1, 2022 daily high, followed by 1.3450. On further strength, 1.3500 will emerge as the next key resistance level.
Conversely, GBP/USD failure at 1.3400 will sponsor a test of the September 25 daily low of 1.3312. A decisive break will expose the August 27 high turned support at 1.3266, followed by the September 23 low of 1.3248.
GBP/USD Price Action – Daily Chart
British Pound PRICE Today
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.36% | -0.61% | 0.04% | -0.06% | -0.93% | -0.89% | -0.40% | |
| EUR | 0.36% | -0.26% | 0.39% | 0.30% | -0.57% | -0.53% | -0.04% | |
| GBP | 0.61% | 0.26% | 0.64% | 0.56% | -0.31% | -0.29% | 0.23% | |
| JPY | -0.04% | -0.39% | -0.64% | -0.08% | -0.97% | -0.95% | -0.44% | |
| CAD | 0.06% | -0.30% | -0.56% | 0.08% | -0.86% | -0.83% | -0.33% | |
| AUD | 0.93% | 0.57% | 0.31% | 0.97% | 0.86% | 0.05% | 0.54% | |
| NZD | 0.89% | 0.53% | 0.29% | 0.95% | 0.83% | -0.05% | 0.50% | |
| CHF | 0.40% | 0.04% | -0.23% | 0.44% | 0.33% | -0.54% | -0.50% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
